Paginator makes pages in blog subdirectories

The paginator is making pages in blog subdirectories.  

I'd like the paginator to apply to the /blog/ directory, which is organized into folders by date.  Its paginating each of those directories as well however!  

Here is an example odd page creation:

http://chartio.com/blog/2013/01/page/2/happydatainnovationday

I'll take a look at a fix myself.  Just making a record of it here.
